In an effort to keep Hampton Roads Realtors®, agents, brokers and lenders up to date on title and closing issues, Reliant Title publishes a bi-weekly email. Our mission is to provide the very best settlement service, client support and training. Professional knowledge helps us all be more successful.
Loan Pre-Qualification or Pre-Approval? — There is a difference. If your buyer has a pre-qualification letter, that does not equate to approval for a loan. It merely states that the loan officer did a credit check and took other information from the prospective buyer. A pre-approval letter requires that the loan be submitted to a mortgage underwriter, and that a far more extensive review has been conducted. As the market has slowed, property is staying on the market longer.
It is now more important than ever that prospective buyers are approved not merely “qualified” for a loan. For the listing agent, there may not be another buyer immediately waiting. For the selling agent, it means going back through the process all over again to find a home that your client can actually purchase.
In recent months, Reliant Title has encountered several cases where a ratified contract was ultimately voided because the borrower was later determined at loan underwriting to not qualify for the loan needed to complete the purchase. In each instance the prospective buyers had pre-qualification letters from their mortgage broker.
Ensure your prospective buyer(s) are approved not simply qualified for their loan!
Please call us at 493-7600 if you have any questions.
If you no longer wish to receive these emails, please click here: unsubscribe.
-###-
|
